Biden Threatens a Windfall Tax and Urges the Oil and Gas Industry to End War Profiteering

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As the U.S. President confronts high pump prices with elections coming up in a week, Joe Biden issued a plea on Monday to oil and gas firms, asking them to utilize their record profits to cut costs for Americans and expand production, or face a higher tax rate.

During his speech at the White House, Vice President Biden voiced his disapproval of large oil firms, saying that they are reaping enormous profits even as Americans struggle to afford the rising cost of gasoline.

According to what he had to say, the petroleum business “has not accomplished its responsibility to invest in America and assist the American people.” Not only are they receiving a “decent return,” as he put it, but they are also generating “profits so large it is hard to believe,” as Biden put it.

‘Their earnings are a windfall of war,’ he added, referring to the violence that is devastating Ukraine, and he emphasized that they have a duty to take action in response to the situation.

He said, “I believe it’s absurd,” and I agree with him. According to him, if they were to give those earnings back to the general public in the form of lower pricing for gasoline, prices would drop by around fifty cents.

He said that if they did not comply, they would be subject to a greater tax on their surplus earnings as well as other limitations. Together with Congress, the White House will investigate these and other potential courses of action. It is time for these firms to put an end to making a profit out of conflict.

Biden stated that oil and gas companies should invest their profits in lowering costs for Americans and increasing production, and if they do not, he will urge Congress to consider requiring oil companies to pay tax penalties and face other restrictions. Biden also stated that he will urge Congress to consider requiring oil companies to increase production.

The event was hosted by the president with one week left before the American people vote on whether or not his Democratic party would continue to have control of the United States Congress. The chances of the Republicans winning control of the House of Representatives are seen to be higher than those of the Democrats winning control of the Senate.

A new round of enormous quarterly profits has been posted by global energy giants such as Exxon Mobil Corp and Chevron Corp. These companies have benefited from the soaring prices of natural gas and fuel, which have contributed to an increase in inflation around the world and led to renewed calls to further tax the sector.

Energy industry professionals are of the opinion that it will be challenging to enact a bill that taxes energy firms on their excessive profits, regardless of which political party wins control of Congress.

The White House for months has been considering congressional proposals that could tax oil and gas producers’ profits as consumers struggling with higher energy prices.

British lawmakers in July approved a 25% windfall tax on oil and gas producers in the British North Sea that was expected to raise 5 billion pounds ($5.95 billion) in one year to help people struggling with soaring energy bills.

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